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Saturday, September 29, 2012

A Growth Model for Greece - Energy

"Greece 10 years ahead"
(GTYA) is the title of a study published by the Athens Office of
McKinsey in mid-2011. It outlines a National Growth Model which, the
study predicts, would create over 500.000 new jobs and add roughly 50
BEUR to Greece's GDP within a decade. The study consists of 72 pages. I have already explained in a previous post that I will make short posts about each major point of the study for those who prefer not to read 72 pages.

The study focuses on growth opportunities in 5 major 'production
sectors' which are already of prime importance to the Greek economy and
on 8 'rising stars', i. e. new sectors where present activity is still
small but where significant potential can be expected. In this post, I
will focus on the 'production sector' of energy (page 43 in
the GTYA-report).

Production Sector --- Energy
GTYA's assessment of the current state of Greece's energy sector is rather devastating ("high energy consumption, low fuel efficiency, low labor and capital
productivity and an expensive energy mix characterize the Greek energy
sector"). Consequently, that sector would offer significant potential if only by turning it around. GTYA outlines 14 possible areas across four the following four areas: